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| sidebar_label: "🎓 Types Of Oracle Feeds At RedStone" | ||
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| # Types Of Oracle Feeds At RedStone | ||
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| Oracles deliver data feeds directly to dApps or blockchains for the correct execution of transactions in smart contracts. Throughout the past years, DeFi market has shown various expectations and needs towards the setup of oracles feeds. RedStone is at the forefront of innovation answering the needs of developers in that sector. Therefore, we identify the below types of data feeds: | ||
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| 1. **Market Feed** | ||
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| The regular market price derived from trading activities on centralized and decentralized exchanges, i.e. ETH / USD or | ||
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| 2. **Contract Rate Feed** | ||
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| Also known as Exchange Rate or Fundamental feed. A ratio between the underlying asset and its derivative derived from the smart contract of a protocol, i.e. wstETH / stETH rate derived from Lido contract or weETH / eETH derived from Ether.fi contract. | ||
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| 3. **Real World Feed** | ||
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| A feed derived from institutional API or another source providing numerical information, i.e. CESR or SOFR | ||
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| 4. **Proof of Reserve Feed** | ||
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| Also known as Net Asset Value (NAV) feed. A data feed based on API or another source that informs about the value of assets backing tokens issued against it i.e. Blackrock BUIDL or Ondo’s. Technically a subsection of Real World Feed. | ||
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| 5. **Protocol native Oracle** | ||
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| The custom implementation of logic supporting a particular orale, i.e. Bitcoin Staking Oracle. Specific implementation is LBTC / BTC price feed, derived based on the number of LBTC minted and the total amount of BTC deposited into Lombard’s system on the Bitcoin chain. | ||
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| ## Lombard Protocol Native Oracle by RedStone | ||
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| Lombard is a Liquid Bitcoin Staking protocol built on top of Babylon. Upon staking BTC, a user receives LBTC as the receipt token. Currently, LBTC does not accrue value over time, since the yield generation is not enabled in Babylon, it is expected to come in Q1 2024\. | ||
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| RedStone team carefully designed the oracle together with the Lombard team in the following manner. | ||
| Here | ||
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| | | Denomination | Deviation Comes From | Complexity Of Delivery | | ||
| | :---: | :---: | :---: | :---: | | ||
| | **Market Feed** | Mainly USD Can be another currency i.e. ETH / BTC | Market trading | Relatively simple | | ||
| | **Contract Rate Feed** | Underlying asset i.e. ETH for Ethereum LSTs | Specified ratio changes in the smart contract | Requires understanding of edge cases and on-chain source | | ||
| | **Real World Feed** | Custom, i.e. for CESR it’s a % yield from ETH staking | Custom, i.e. CESR API is updated every 24 hours | Depends on the feed, usually medium difficulty | | ||
| | **Proof of Reserve Feed** | Custom, usually USD value | Custom, usually every 24 hours from an API | Depends on the source, usually medium difficulty | | ||
| | **Protocol Native Oracle** | Custom, i.e. BTC in the case of Lombard internal Oracle | Custom, i.e. each X minutes for Lombard | Usually work-intensive | | ||
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